Archive for the ‘Financing/ Interest Rates’ category

What would you say to a program that helps you pay off your Hoboken mortgagein half the time? Sounds great doesn’t it?

Here’s how it works:

It’s called the Home Ownership Accelerator(HOA). It has only been available in the United States for a short time, but it has been successful in both Great Britain and Australia for several years.

The HOA is a type of loan that works by using the money you have sitting idle in your checking or low interest savings account to pay off your mortgage faster. The great news is that you don’t need to change your spending habits.

It works by taking your paycheck that you deposit into the checking account that comes with the loan and applying the money to reduce your mortgage balance.

The benefit of this is that the mortgage interest that you owe goes down immediately. Mortgage interest is calculated on a daily basis and is based on your interest rate as well as the current size of your mortgage.

When you need money, to pay your bills for example, you write a check from the checking account. The mortgage balance then goes up to cover the amount of the check.

This type of loan works best for homeowners who make more than they spend in one month. Over time, this difference has a substantial impact on the remaining term of your Hoboken mortgage.

Of course, you don’t need this type of loan in order to pay off your mortgageearly. You can do it with your current mortgage by simply paying extra each month. But let’s face it, not all of us have the discipline to do that. An HOAmakes it easy by doing it for you.

Who can benefit froman HOA? The HOA is for those who are able to save money each month, have good credit, and have a solid income. It is great for those who are self-employed, investors, and high income earners. An HOA can also be used as a reverse mortgage.

In order to qualify, your credit score needs to be at east 720 and you need at least 25 percent equity in your home or be willing to put 25 percent down on the loan. In addition, loans can go up to $2.5 million, but it must be a loan on your principal residence.

About Eddie: Eddie Perez is a resident of Hoboken and works as a New Jersey licensed Broker – REALTOR. His goal is to educate both buyers and sellers so that they can make the most of their bottom line while saving time and having fun during the process of buying or selling condominiums and brownstones in Hoboken and the surrounding metro communities including Jersey City and Weehawken, New Jersey. He has personally sold over 135 homes and is among the top producing agents in Hudson County. You can email questions to Eddie or to schedule an appointment to meet with Eddie, call him direct at 201.344.2886.

More and more buyers are teaming up with Mom and Dad to help alleviate some of the challenges of buying a condo in today’s market.

(Where were you, Mom and Dad, when I was buying my first home?…)

Mortgage pro Ted Schirm with Investors Savings Bank states, “Securing financing for a Hoboken condo has become more challenging since banks have tightened their lending standards. Additionally, when parents are investing with or for their children and wish to obtain the best mortgage rates, many lenders are seeking substantial down payments, typically 25% of the purchase price or more.”

“Kiddie Condos – The terminology, used when a parent, a very generous parent, buys or invests in a condo for their college-bound student, can offer problems when trying to get attractive financing for these transactions.”

These inclulde:

The property cannot be considered a second home.

Investment Propety down-payment requirements are more substantial than what was planned.

The parents don’t want to pay investment property mortgage rates.

The college student has no income and cannot be put on the mortgage.

“Our Kiddie Condo” Financing program allows us to do the following:

Provide financing as an owner-occupied property

Put as little as 20 percent down

Have the child put on the mortgage to help build a credit history

Mr. Schirm goes on to say, “You should note that this program works for any situation where a non-occupant co-borrower is needed to boost income.”

To minimize the potential of a tax occurrence, parents and children should also seek advice from their tax professional as to how to best structure loans or gifts for real estate purposes.

Having the right team in place and asking the right questions can help you and your parents achieve maximum results from your mutual investment.

Now go call Mom and Dad and tell them how much you love them!

About Eddie: Eddie Perez is a resident of Hoboken and works as a New Jersey licensed Broker – REALTOR . His goal is to educate both buyers and sellers so that they can make the most of their bottom line while saving time and having fun during the process of buying or selling condominiums and brownstones in Hoboken and the surrounding metro communities including Jersey City and Weehawken, New Jersey. He has personally sold over 135 homes and is among the top-producing agents in Hudson County. You can email questions to eddie@InvestHoboken.com. To schedule an appointment to meet with Eddie, call him direct at 201.344.2886.

If an FHA or VA loan is in your future to purchase a condo, be sure to check into the specifics for the area you are interested in. The majority of condos must be purchased with conventional financing (20% down payment) or all cash.

To qualify for FHA and VA loan programs, condos must meet certain criteria, and be approved by the U.S. Department of Housing and Urban Development for FHA, or the U.S. Department of Veterans Affairs for the VA. Not very long ago, there were ’spot approval’ processes where an individual unit could be approved on a case-by-case basis, but at this time those options are no longer available.

What is the best way to find out if a condo is VA or FHA approved? Following are two online tools that buyers or sellers can use to find approved condo communities. The tool to look up approved condo communities for FHA loans can be found at FHA Loan information and for the VA VA Loan information . Both are very useful resources to use while searching or your perfect condo.

For help in finding and closing on your perfect Hoboken home, contact Eddie Perez,Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

The cost to close the deal on your new Hoboken home may not seem like that much when you have just purchased a home worth hundreds of thousands of dollars. However, it would be nice to have some cash left over by saving on your closing costs.

Following are some tips to give you ideas of how to reduce the closing costs on your new home:

Be sure to shop around. Ask a mortgage broker or bank to provide a good-faith estimate, and include a detailed list of closing costs and terms.

While we are in a housing climate that favors the buyer — ask the seller to cover some or all of the closing costs.

By predicting how long you plan to live in your Hoboken home can save you money, too. If you would like to sell within three to five years it could be a good idea to keep closing costs down by choosing a zero-points loan, which would have a higher interest rate and mortgage payment, but greater up front cash savings.

Take the time to research third-party expenses involved in closing costs to avoid being overcharged.

Also, find out what your local government charges for recording your title or transfer taxes. Than you will notice ahead of time if there are any overcharges.

Be cautious of any items listed as”administrative” or “document preparation” fees. If you notice any of this be sure to question it.

For help in finding and closing on your perfect Hoboken home, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, a progressive city where they’re always coming up with new ways of making it a better place to live, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

While you are in the process of getting a mortgage many lenders will look closely at your application before agreeing to give the approval for financing.

Following are five items that lenders consider before approving a loan, they are often referred to the ‘5 Cs of Credit’ – Character, Collateral, Capital, Credit and Capacity:

Character – This is a subjective opinion of your trustworthiness to repay the loan. For this, your educational background, professional experience, length at your current employer and current residence will be considered.

Collateral – The lender will be looking for assurance that if the borrower was unable to repay the mortgage, the property that is mortgaged can be resold. This is why lenders require an appraisal for the home they will be approving a loan for.

Capital – The higher the down payment, the more likely it is that you will keep up with the mortgage payments.

Credit – A lender will contact a credit agency that has information regarding payments on major credit cards, auto loans, leases, etc. for the last six years and calculate a person’s credit score.

Capacity – Lenders will review your income level and financial obligations. Many lenders will follow the rule that a mortgage should not be given if it is more than 32 percent of your gross income.

For more information on living in a progressive city like Hoboken, where they’re always coming up with new ways of making the city a better place to live, contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

Interest rates on home mortgages fell—once again—down to another record low at the end of June.

According to Freddie Mac’s weekly survey of lenders’ rates, the average rate on 30-year fixed-rate mortgages dropped to 4.69 percent with an average of 0.7 point in the week that ended June 24, 2010. Last year, the average rate on 30-year fixed-rate mortgages was 5.42 percent.

The average rate on a 15-year fixed-rate mortgage fell to a low 4.13 percent with an average 0.6 point. Last year, that average was 4.87 percent.

If you have been patiently waiting to buy a Hoboken home, now is the time to do it. All of the key factors are in place to ensure that your home purchase will be a major, positive life changing event. With low mortgage rates available, this is the opportunity you have been waiting for. Make 2010 the year you purchase your dream home. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City. Eddie can also be reached by phone at 201-344-2886.

There still is a clear path to home ownership with the current low interest rates. If you have been on the fence regarding purchasing a Hoboken home, now is the time to do it while the rates still remain low. There are many properties on the Hoboken market to choose from so allow me to be your guide.

During the week ending May 27, 2010, the interest rate on a 30-year fixed-rate mortgage averaged just 4.78 percent. A year ago, the average was 4.91 percent.

The compilation of these rates are from a weekly survey of lenders by Freddie Mac.

Average rates on 15-year fixed-rate mortgages and adjustable-rate mortgages (ARMs) remain low. The 15-year fixed-rate mortgage averaged 4.21 percent, a record low since Freddie Mac started tracking this rate in August 1991, with an average 0.7 point. The average rate on the five-year Treasury-indexed hybrid ARM averaged 3.97 percent, also with an average 0.7 point.

Frank Nothaft Freddie Mac Chief Economist, has stated that, “the low interest rates would help to elevate home-buyer affordability and soften the effects of the sunset of the home-buyer tax credit.”

If you have been patiently waiting to buy a Hoboken home, now is the time to do it. All of the key factors are in place to ensure that your home purchase will be a major, positive life changing event. With low mortgage rates available, this is the opportunity you have been waiting for. Make 2010 the year you purchase your dream home. For more information contact Eddie Perez, Broker-REALTOR, CDPE. Eddie’s market includes Hoboken, Jersey City, Weehawken and Union City. Eddie can be reached at mailto:eddie@InvestHoboken.comor 201-344-2886.